Synopsis:
Popular Vehicles & Services Ltd expanded its commercial vehicle portfolio in Northern India through its subsidiary Prabal Motors, acquiring BharatBenz dealership operations from Globe CV in Punjab. The Rs. 12 crore deal covers eight facilities across the state. The stock touched Rs. 127.45 intraday, reflecting a 7.27 percent gain over the previous close.
A leading automotive dealership stock was in focus after announcing a major acquisition in the commercial vehicle space. Investor sentiment turned positive as the company expanded its footprint into a new market, building on its existing presence across Southern and Western India.
Popular Vehicles & Services Ltd, with a market capitalization of Rs. 861.50 crore, opened at Rs. 125 on Wednesday against a previous close of Rs. 118.80. The stock touched an intraday high of Rs. 127.45, marking a 7.27 percent rise. Over the past one year, the stock has delivered a strong return to shareholders.
What’s the News?
Popular Vehicles & Services Ltd announced that its wholly owned step-down subsidiary, Prabal Motors Pvt. Ltd., has signed a Business Transfer Agreement to acquire the BharatBenz dealership operations of Globe CV Pvt. Ltd. in Punjab.
The Rs. 12 crore transaction includes eight facilities, seven of which are integrated 3S outlets (Sales, Service, Spare Parts) and one dedicated to spare parts. The acquisition includes the transfer of entire business units, including the new vehicle inventory, assets and manpower strength. The vehicle inventory is worth ₹22 crores.
With this move, Prabal Motors becomes the exclusive BharatBenz dealer in Punjab, strengthening its commercial vehicle presence in Northern India. The facilities, spread across key cities, feature modern showrooms, workshops with 32 service bays, spare parts distribution, and pre-owned vehicle operations.
This strategic step enhances Popular’s geographic reach beyond its existing markets in Maharashtra and Tamil Nadu, while deepening its partnership with the BharatBenz brand.In FY25, Globe CV reported revenues of ~Rs. 250 crores and employed a workforce of 222.
Management Commentary
Commenting on this development, Mr. Naveen Philip, Promoter and MD, Popular Vehicles and Services Limited said, “We are pleased to announce the successful acquisition of BharatBenz dealership operations in Punjab from Globe CV, further solidifying our presence in Northern India. With this acquisition, we now operate eight strategically located facilities in the major cities across the state, making us the exclusive dealer partner for BharatBenz in Punjab.
This transaction marks a major step forward in our long-term growth strategy of expanding beyond our strongholds in Kerala, Tamil Nadu and Maharashtra, positioning us as a pan-India player in the commercial vehicle retail and service ecosystem.
Punjab is a key market with significant potential in both freight and passenger movement. We are confident that our entry will enable us to capture this opportunity while delivering a superior customer experience. The addition of an experienced workforce and well-established operations will ensure seamless integration, while strengthening our partnership with Daimler India Commercial Vehicles.
As we scale our commercial vehicle business into newer geographies, we remain committed to investing in capability-building, technology-driven service excellence, and customer-centric solutions.”
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Financial Snapshot
On a quarter-on-quarter basis, sales declined 4.47 percent to Rs. 1,310.90 crore in Q1FY26 from Rs. 1,372.36 crore in Q4FY25. The company reduced its pre-tax loss to Rs. 11.12 crore from Rs. 16.21 crore, while net loss narrowed to Rs. 8.76 crore from Rs. 13.72 crore.
On a year-on-year basis, sales grew 1.5 percent to Rs. 1,310.90 crore in Q1FY26 from Rs. 1,291.45 crore in Q1FY25. However, profitability weakened as Profit before tax fell from a profit of Rs. 8.29 crore to a loss of Rs. 11.12 crore, while the company reported a net loss of Rs. 8.76 crore compared to a net profit of Rs. 5.45 crore in the same period last year.
About the Company
Popular Vehicles & Services Ltd, part of the Kuttukaran Group, is one of India’s leading diversified automobile dealership companies with over 70 years of operations. The company has a strong presence across Kerala, Tamil Nadu, Karnataka, and Maharashtra, and recently expanded into Northern India.
It operates dealerships for leading brands such as Maruti Suzuki, Jaguar Land Rover, Honda, Tata Motors, BharatBenz, Ather Energy, and Piaggio, covering passenger, commercial, and electric vehicles. Its business spans new vehicle sales, servicing and repairs, spare parts distribution, pre-owned vehicles, and facilitation of insurance and financing products.
Written by – Manan Gangwar
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